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Private Established Company in Commercial Construction
and Development |
| Services Provided - CFO |
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Situation |
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A well-established commercial construction company decided to pursue a new growth and profitability strategy — to construct the buildings and acquire and develop the land beneath them. Having acquired two parcels of land, the company quickly learned that land development requires unique expertise. In addition, the company was in discussions with multiple investors to acquire a commercial property to convert to condominiums and retail space. |
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Challenge |
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To create a strategy to enhance the company's ability to analyze commercial building economics. To make appropriate financial and JV decisions. |
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Actions |
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Defined JV requirements, issues, and objectives. |
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Established critical operating and financial criteria. |
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Analyzed potential financial and operating software—selected Argus and negotiated terms with the vendor. Implemented the software and developed a technology training plan. |
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Impact |
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An informed decision was made not to move forward with the JV based on the enhanced understanding of commercial building economics. |
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